Council OKs contract for managing American Bank Center

CORPUS CHRISTI - The City Council approved a new five-year contract for the management of the American Bank Center that emphasizes bringing in more business.

The firm, SMG, has managed the center since it opened in 2004.

The new contract allows the company to earn bigger bonuses if it books more events and brings in more money. Previous bonuses were awarded based on customer satisfaction surveys and if the center met its budget. A clause in the old contract allowed the city to award bonuses even when the center operated at a loss if officials decided to do so.

The company's base fee was cut by about 30 percent. If it brings in enough business, it will earn the same as it did in years past because the bonus cap was raised.

Councilman Larry Elizondo said the new contract will benefit the city and the center.

"Performance-based payments, what a novelty," he said. "I'm glad we're incorporating it into the plan."

Councilman John Marez said the bank center has brought in entertainment that wouldn't have come to Corpus Christi otherwise.

"There is considerable entertainment value," he said. "We could have never had that in a 3,500-seat arena."

That's about the size of crowd that could have fit into Memorial Coliseum, the city's previous main arena. The bank center holds about 10,000.

The council approved the contract 6-0, with Councilman Brent Chesney abstaining and council members Kevin Kieschnick and Chris Adler absent. Chesney owns an interest in the IceRays hockey team, a tenant of the bank center.